What won Paul Krugman the nobel prize and what is his solution to economic crisis?
Krugman was honored “for his analysis of trade patterns and location of economic activity,” said the Royal Swedish Academy of Sciences, which selects the winners. His work showed how economies of scale influence trade and urbanization. The work Krugman received the prize for is pretty mundane and uncontroversial. His political opinions with regards to economics are always on the extreme left of Keynesian Theory. His answer to everything is higher taxes and more government spending to prop up the economy. He believes that the New Deal actually could have ended the depression if more money had been spent by the federal government and recommends similar programs for our current recession. His purely academic and theoretical ideas with regards to central planning models never have worked in practice. I wouldn’t trust much of anything he has to say about the current recession. In 2002, he called for the FED to create a housing bubble to counter the Nasdaq crash. In his 2002 New York Times
